Apple Inc. (NasdaqGS:AAPL) reported dazzling earnings yet again, shooting the stock back into the $160-$163 range. This is the highest the stock’s climbed since the brutal volatility of October 2018, and our Shah Gilani agrees with many Apple spectators – this stock is definitely a buy right now.
On this week’s episode of Varney & Co., Shah Gilani and the panel of experts discuss the latest on Facebook Inc. (NasdaqGS:FB). Though the company allegedly paid teens to install an app that could collect information – but, as Shah says, the people involved knew what they were signing up for, so he doesn’t see this as something that will affect the stock. Later, with the cold front already striking multiple cities across the U.S., the experts debate on what this frigid weather could do to one sector’s impending earnings… Click here to watch.
As if thirteen so-called “exchanges” and forty “dark pools” aren’t enough, here comes the Members Exchange (MEMX).
Founding members of Bank of America’s Merrill Lynch, Morgan Stanley, UBS Group, Charles Schwab, TD Ameritrade, E*Trade Financial, Fidelity Investments, Citadel Securities, and Virtu Financial claim the new trading venue slated to open in 2020 will feature lower costs, greater transparency, and simplified order types.
Seems all well and good, but what they’re never going to admit is why they’re really pushing another exchange into an already fragmented, liquidity draining, churning ocean of viciously competing trading venues.
If you’ve been a Wall Street Insights & Indictments reader for any amount of time, you know that Shah’s goal with this e-letter is to reveal the truth when the media can’t (and won’t), show you how to make an absolute killing no matter what the market’s looking like, and to teach you how to play the Wall Street system.
And that’s exactly why we’re here with you today.
Wall Street no longer makes sense – you watch, day in and day out, as companies you thought were healthy crash and burn for seemingly no real, logical reason. Then, at the same time, other companies that should skid down the runway suddenly soar, leaving us scratching our heads and wondering if the rules even apply to Wall Street anymore.
Truthfully, they don’t. We’re in a new reality, and investors have no choice but to adapt.
But Money Morning‘s Keith Fitz-Gerald has spent decades – and over $5 million – creating a system that can help you make sense out of the nonsense that’s become the Wall Street norm.
With the help of this system and Keith’s expansive knowledge, you could be on the other side of this new reality – and be one of the only ones to have the chance at a straight shot to making over six figures by next year.
The most important thing for the market right now is China – and without a note of some resolution, Shah Gilani says that the President needs to do something to push the market higher. If we get a deal with China, the market could set the stage for a further rally. But if nothing happens, a big tank could be ahead.
On this week’s episode of Varney & Co., the hot question of the hour is what’s more important right now – earnings or China? Easily, according to Shah Gilani, it’s China, because if no resolution comes, these tariffs could morph into a full-fledged trade war, which is exactly what the market doesn’t need right now. Later, the panel of experts talk Tesla Inc. (NasdaqGS:TSLA). The company plans to raise the price of its electric vehicles, which Shah declares is a terrible move – but, he mentions, could present a good shorting opportunity if TSLA stock drops lower… Click here to watch.
It did everything right for decades, making itself the first company in the history of the world to be worth one trillion dollars.
Then it fell off analysts’ conviction buy lists, and Apple’s stock got hammered good and hard.
What suddenly happened to the most valuable company in the world? How could it lose almost $300 billion in value in a matter of weeks?
Truthfully, what happened to Apple was mostly its own fault. Sure enough, it got caught up (or down as the case may be) in the market’s October selloff, but that wasn’t unexpected.
In hindsight, Apple held up better than the market last October and better than its FAANG family members did.
What took the shine right off the most valuable company in the world, after its all-time high of $233.47 in October, was the company’s announcement on November 1, 2018, not a month after its high water score, that it would no longer breakout iPhone sales in its earnings.
The stock got hammered – hard.
That self-inflicted wound, some say death knell, happened just as the Dow Jones Industrial Average, which had traded down close to 24,000 at the end of October, began a robust rally.
Only a week and a half into November, the Dow got back above 26,000.
Apple, not so much. In fact, not at all. Apple stock continued to slide, like it was falling off Everest.
The stock traded down to $142, just shy of a 40% dump off its high-flying act.
It’s back up around $155 today.
Is Apple at $155 or just below there a “value” stock? Is it a bargain down by more than 33%?
Or, is Apple too full of worms and worth betting against?
Last week, the investing world lost a man of conviction, and, for sure, contradictions – a true luminary, a pioneer, an advocate for “Mom-and-Pop” investors, a generous man, and a legend in his own time.
John Clifton Bogle, who preferred to be called Jack, died at the age of 89, leaving behind a lot.
That’s because Jack, who started The Vanguard Group, the $5.3 trillion asset management company that specializes in indexed products for passive investors, left behind an estate worth $80 million.
That’s after giving away half of his Vanguard salary for most of his working career.
But, the legend himself began criticizing the passive investing boom he’s credited with pioneering.
Whether his accumulated apprehensions and market fears will lay the myth of passive investing to rest, he won’t get to see – but we better be watching if the myth turns into a monster.
And, later, I have a special message for you about another hot topic in investing.
Despite a rough end to 2018, we’re off to a good start in the New Year. If earnings come out positively, that will be a boost in the right direction for stocks. Though, says Shah Gilani, we are at critical levels right now on the major indexes, if the Dow stays above 24,000 and the NASDAQ stays above 7,000, he’s all in.
On this episode of Varney & Co., host Stuart Varney, Shah Gilani, and the panel of experts discuss how the incredible defeat of Prime Minister Theresa May’s Brexit deal will affect the U.S. It’s a “non-event” to us, Shah says, and if there is a hard Brexit, he believes that the U.S. market, which is the strongest market in the world, will soar higher as money moves over here. Then, later, the experts discuss the fate of social media favorite Snap Inc. (NasdaqGS:SNAP) as its Chief Financial Officer, Tim Stone, leaves the company (and $19 million) after just eight months. What does this mean for Snap and its users? It may not be good news… Click here to watch.
Besides the U.S. and China saber-rattling over control of the South China Sea (see last week’s article), the reason the U.S. will never get what it really wants in a trade deal is because Chinese “trade” is how China plays its foreign policy game.
And they’re very dirty players.
What the U.S. needs to get out of a trade deal is for China to stop playing dirty, which it will never do.